When should I outsource for my small business?

In short, anytime it makes financial sense.  For some, that could mean before the business has even begun, for others it could mean waiting until you achieve a steady income stream.  Let’s take a look at 3 situations where outsourcing becomes more of a cost saving than an expense.

When you are not the expert

There are so many aspects to owning a business that you cannot possibly be an expert at all of them.  If you own a business, you are most certainly an expert at the ‘doing’ of the business; bakers bake, trainers train, painters paint.  But what about the rest of the tasks that contribute to a successful business?  Tasks like accounting, marketing, human resourcing, and administration.  There is so much to know, but as a small business owner, you do not have to know it all. 

This is where outsourcing comes in.  You can outsource any or all of these tasks to people who do these things for a living.  To professionals.  Their knowledge and expertise will save you time and money in the long run.  They have the experience to do the job once and do it well.  This is especially true if some of your tasks are particularly complex or difficult (I’m looking at you taxation accounting). 

When you don’t have the time or the money

As a business owner, where do you want to be spending most of your time?  Tied up in administration?  Struggling in Squarespace?  Compiling accounts?  Absolutely not, you want to be using your knowledge and expertise to do the work of your business.  Your time is money.  Here is an example of how outsourcing can save money:

Think about your website.  At first glance it might feel like you are saving money by setting up your own website. But consider, how many hours would it take you to get the same result as a professional web designer?  Could you even get close to the same result with your own knowledge?  Now multiply your hours by your hourly rate.  That is the real cost. 

So, although outsourcing may be an upfront expense, when you do the calculations, it can represent a considerable saving for the business.

When you DO have the time and the money

This is a situation small business owners can aspire to; when outsourcing is not essential for saving time or money.  When it is a luxury.  When you can do the task, but you chose to have someone else do it for you.  Maybe you learned to do the task out of necessity, maybe you always knew how, but times have changed, business is booming and you want, not need, to focus your time on more important things, like strategy or work/life balance.  Here, outsourcing is about reinvestment and growth rather than direct cost savings.

So, yes, the question of when to outsource will differ for every business, for every owner. Just remember to look at ALL the numbers, including the cost of your own time and consider the long term outlook; how much money could outsourcing save you?

Find out how outsourcing to me can help you save money when marketing your small business. 

Shoot me an email.  Writing and marketing is my business.  I am a writer with a background in marketing and a passion for small business.  I specialise in website copy, content creation, and marketing strategies.